(Profitability analysis)Last year the P. M. Postem Corporation had sales of $408,000, with a cost of goods sold of $111,000. The firm's operating expenses were $126,000, and its increase in retained earnings was $72,030. There are currently 24,000 shares of common stock outstanding, the firm pays a $1.63 dividend per share, and the firm has no interest-bearing debt.

a.Assuming the firm's earnings are taxed at 35 percent, construct the firm's income statement.

b.Compute the firm's operating profit margin.

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Part 1

a.Assuming the firm's earnings are taxed at

35%, construct the firm's income statement.

Complete the income statement below:(Round to the nearest dollar.)

Income Statement
Revenues	$
Cost of Goods Sold
Gross Profit	$
Operating Expenses
Net Operating Income	$
Interest Expense
Earnings before Taxes	$
Income Taxes
Net Income	$